Recreational vehicle manufacturer Monaco Coach Corp. failed to give advance notice to the employees before layoff on December.
Monaco Coach (Coburg-based company) filed for Chapter 11 bankruptcy protection on March 5, three days after laying off all but 150 of its 2,225 employees.
On behalf of 2,600 employees Philadelphia law firm Berger & Montague P.C. filed the lawsuit Friday in U.S. Bankruptcy Court in Delaware.
Eight lead plaintiffs from the company’s Coburg operations filed the suit on behalf of all laid off Monaco Coach workers, including those who lost their jobs at the Milford, Wakarusa and Warsaw plants in Indiana.
The lawsuit claims that Monaco violated the Worker Adjustment and Retraining Notification Act — referred to as the WARN Act — which requires that employers give 60 days advance notice ahead of a plant closing or mass layoff. The lawsuit seeks to recoup 60 days of wages and benefits.
U.S. Department of Labor, suggests, the WARN Act waives the 60-day notice provision for a so-called “faltering” company, particularly in situations where the company is raising capital to stay open.